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A few days ago, the news that Jia Yueting, founder of FF, voluntarily filed for personal bankruptcy reorganization was confirmed that Jia Yueting had applied to the US court for personal bankruptcy reorganization in accordance with Chapter 11 (chapter 11) of the relevant US law.

According to the scheme, all FF shares and related income rights held by Jia Yueting are officially transferred to the creditor trust, which will be controlled and managed by the creditor committee and the trust trustee. This means that since the outbreak of the Letv crisis, FF, which has been regarded as the hope of repayment, no longer belongs to Jia Yueting.

In the face of the approaching debt, is Jia Yueting able to evade debt repayment? In response, Han Li, a lawyer at Meimei Law firm, which is responsible for the personal bankruptcy and reorganization of Jia Yueting, said that there are two ways of bankruptcy in US law, namely, the bankruptcy liquidation of Chapter 7 and the bankruptcy reorganization of Chapter 11.

For Chapter 7, it is a liquidation scheme for American companies, and for an individual, it means that the person will hand over all his assets except for the necessary expenses of life and work, thereby forgiving the debt. After the bankruptcy liquidation, the individual will no longer have the debt burden and will have all future income and property.

Chapter 11 is a corporate restructuring plan, but for individuals, it is a more complex one. First, individuals must develop a restructuring plan to repay creditors, which usually means continuing efforts to repay their creditors and requiring creditors to support the plan.

Han Liru also said that for nearly a year, Jia Yueting has been taking measures to improve and maintain the value of FF. And do not choose to evade the debt, but hope to repay the debt by filing for bankruptcy restructuring. However, whether the procedure can be implemented, the insolvency court will take into account various factors, need to check whether the plan is in the best interests of each creditor, and compare it with the benefits gained by creditors in the implementation of the bankruptcy liquidation plan. That is, the plan still needs to be voted on by creditors.

After the completion of the plan, Jia Yueting will no longer hold any stake in Faraday Future (FF). Previously, Jia Yueting claimed that he would be responsible for the domestic debt to the end, that is, the outside world would have the idea that the financing participating in FF might be used to repay the debt, so this is beneficial to the development of FF. Not only will it not affect the normal operation of FF, but it will also bring positive help to the company's equity financing and future IPO.

In addition, the website of bankruptcy company documents and filing management company Epiq Cases recently disclosed a document showing that Jia Yueting had a monthly income of $93810 in the six months before filing the bankruptcy filing on October 14.

Jia Yueting still earns about 660000 yuan a month in debt, which is, according to netizens, "one Mercedes-Benz a month."

Although there is a lot of income, so far, Jia Yueting has repaid more than $3 billion in debt, and the total outstanding debt is about $3.6 billion. If you subtract the secured debt that has been frozen for disposal of domestic assets and convertible shares, Jia Yueting's remaining net debt is about $2 billion. With a net debt of $2 billion, regardless of bankruptcy, restructuring and other factors, Mr. Jia Yueting's monthly income of $93800 still needs to be repaid without food or drink.

Burdened with huge debts, Jia Yueting did not choose bankruptcy liquidation, but chose to continue to repay the debts. from this point of view, it seems that it is still trying to save enterprises, make enterprises out of the predicament of insolvent, and restore vitality and vitality. In bankruptcy, he wants to return home to continue financing with his "dream", but it is not clear whether anyone will buy it. After all, "PPT" has not yet completed his masterpiece.

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